In July, the legendary Rolling Stones played their first concert in independent Montenegro. Those of our compatriots who preferred to meet the idols at the Adriatic resort of Budva were able to fully grasp the meaning of the word 'satisfaction'. They enjoyed the Rolling Stones at tables, in the fresh air, and even waist-deep in water. Not only the impressions but also the prices were unforgettable - €100 for the most expensive ticket.
Such are the contrasts of the Montenegrin market for now. Real estate by the sea, which has been rapidly rising in price over the last couple of years, now costs a decent amount, but current living expenses and quality pleasures are minimal. The low cost and variety of gifts of land and sea have been written about more than once: red mullet, turbot, and others cost €2-10; grapes and kiwis grow overhead; no one eats imported dairy products - all are provided by local farms...
In an hour you can fly to Rome and Milan, or take a ferry to the Italian coast with your personal car (the cost of the trip will be from €300), to then travel throughout Europe. Getting a visa at the local Italian consulate is quite easy for property owners who have lived in Montenegro for at least six months. Because of the cheapness of yacht marinas in recent years, owners of private vessels have been drawn to the country. They are attracted by the minimal (by European standards) cost of winter storage and maintenance. The annual 'parking' with full service for a 40-45-foot vessel costs only €1,000-1,500. At the same time, maritime traditions are strong here, and qualified personnel are available: the employment of Yugoslav sailors throughout Europe is considered a profitable business for recruitment agencies.
Budva Riviera
However, unfortunately, the word 'cheap' is increasingly less applicable to Montenegro's main commodity today - land and real estate. First of all, this concerns the most famous Montenegrin resort - Budva, on which the domestic buyer with average income is literally fixated for reasons of prestige.
The high concentration of solvent demand in one place has led to disproportionality and imbalances. The cost of land for development on the first and second lines from the sea at other resorts can differ by 2-6 times less, and the same story goes for 'ready-to-use square meters'. According to experts, housing prices in Budva, as well as in the nearby resorts of Becici and Rafailovici (from €3,000-4,000 per sq m on average, up to €6,000 per sq m in the best places) will soon be close to the 'ceiling', as they have already overtaken Croatian Split, Dalmatia, and even the prestigious Istria is left behind.
The quality of life also suffers greatly from the construction boom: although since May 1 any construction in the resort is prohibited, the rule is often ignored. As a result, intermediaries working with private investors increasingly prefer to bet on other resort areas, allocating no more than 10-12% of their base offerings to Budva.
Those wishing to profit from the continuing price growth in Montenegro should look more broadly at geography. Besides the Budva Riviera, there are the Herceg Novi Riviera, Boka Kotorska Riviera, Bar Riviera, and Ulcinj Riviera. In a couple of these places, the potential for price growth over the next year is currently estimated at 50-60%, while for Budva it is predicted to be about 20%. Not coincidentally, since the middle of last year, demand from British and Irish private investors has shifted 30-40 km south towards Albania.
Land on the first and second lines from the sea here, in Bar, can still be bought at a price of €50 thousand per 'sotka' (100 sq m). Further, in the area of Ulcinj, where the famous 'Velika Plaza' is located, plots by the water are even cheaper - from €15 thousand (for comparison: in Budva, similar land is offered at a price from €100 thousand per 'sotka').
Bar Riviera
Besides prices, the southeastern part of the coast attracts with its proximity to one of the largest European bodies of water - Lake Skadar. Not long ago, the construction of a new four-kilometer mountain tunnel to it was completed, so it takes only 15-20 minutes by car or electric train to get from the coast to this green zone. The water in the lake is crystal clear - drinkable, plus freshwater fish in addition to traditional seafood are always abundant in local restaurants. Paying €5, you can catch a bucket of small carp from the shore in two hours, and experienced fishermen leave with five-kilogram carp.
The Bar Riviera is richer in transport infrastructure. Here not only are the roads wider, but there is also the Bar-Belgrade railway line. The problem is that in summer the situation on the roads is difficult, any route takes three to four times longer compared to the winter period. Many vacationers go to the sea every morning from more remote areas, and in the evening they go back, and the roads are mostly narrow. The average speed of the traffic flow is 5-10 km/h. Even a minor accident in such conditions can lead to missing a flight, and given the assortment of the local vehicle fleet, this is not uncommon. There are no state restrictions on the import of cars by year of manufacture, and Montenegrin youth own 4-5 cars that are barely running, costing €200-500.
A vital alternative in such a situation is the availability of a railway. From Bar, in particular, you can take a train to the capital Podgorica, whose airport receives not only charters but also regular flights from all over the world. You can also go by train to any European city.
Herceg Novi Riviera
The opposite part of the coast, in particular the city of Herceg Novi on the border with Croatia, is also an interesting place for living and investing. First of all, it is a year-round resort. Here is the world-famous Igalo thalassotherapy complex, a very beautiful promenade, and you can find restaurants of good European level. As in Budva, there are large investments: in particular, large sums have been invested at Cape Arz (on the Luštica Peninsula) opposite Herceg Novi.
However, for some reason the Herceg Novi Riviera is not very popular with our tourists, even though mud and water therapy in Igalo is extremely popular with Germans and the British. The city of Herceg Novi itself is quite large, surpassing Budva in population, but the development mostly remains from socialist times. Probably for this reason, prices lag 10-12% behind Budva. The gradually reviving new construction promises to narrow this gap over time.
The location of Herceg Novi is interesting because it is actually the first city from the border with Croatia, just after Dubrovnik. It is located directly in the throat of the Bay of Kotor, this giant 'Adriatic fjord', right at the exit to the sea. It is difficult to overestimate this fact given the described road problems. Driving around the bay by land even in calm winter months takes 2.5 hours, while in summer the journey to other resorts and Tivat Airport stretches to eight hours. But the ferry solves the transport problem.
Olga PERSIKOVA.Real Estate Digest